House Hacking: When the units are fully rented?

Question

I am curious about what the most ethical and time-tested method for transitioning to a house-hacking situation is when the property you acquire is already at full capacity.

What is the best way to navigate the line between the renter's and the owner's rights?

- Ask politely for them to leave?
- Exercise some owner's right/control over the property?
- Incentivize with a lease-ending "buy out"?

Brandon Rush · Answer

Hey Scott,

I think it all depends on the property an obviously your strategy should be determined before purchasing the property. Here are some options:

* If the property is occupied prior to purchasing, you can have a contingency stating one of the tenants must be moved out prior to closing. This puts the work on the current owner.

* Assuming the tenant is on a month to month lease or lease ending soon, you could give them written notice that you will not be renewing their lease and they must vacate the apartment as of X date (based on your local laws). Probably not the most exciting option but, its an option.

* You should not run into a situation where all tenants are on long term leases and you are planning to house  hack. This should have been determined before purchasing the property. If you do end up in this situation, then yes, a lease-ending buy out is an option. But, the tenant has no obligation to agree to it.

Good luck!